More than half (55%) of Canadian homeowners plan to stay in their current home for the foreseeable future while only 10% are looking to upsize, according to a new survey conducted by CPA Canada.
At the same time, 61% of homeowners looking to move complained they are being sidelined, either waiting for prices to improve or facing financial constraints to sell.
“This suggests a housing market that is increasingly stuck, with many homeowners holding onto starter homes longer than expected,” said David-Alexandre Brassard, CPA Canada’s chief economist. “Limited movement is reducing turnover and slowing overall market activity. Meanwhile, expected downsizing among older Canadians remains modest, with only 19% of those aged 55 and older planning to do so, making it harder for first-time buyers to enter the market.”
Brassad also pointed out there was a mismatch between what Canadian homebuyers want and what is being built.
“About half of non-homeowners aspire to single-family homes or townhouses, yet these types of dwellings account for only about one-third of new construction,” he said. “Condos are less popular, with just 15% of non-homeowners naming them as their preferred option, and fewer than one in 10 Canadians viewing a starter home or condo as a viable first step.”
The survey noted that nearly half (46%) of Canadians believe homeownership is becoming increasingly difficult to achieve, with one-quarter complaining that housing is simply overpriced.
Nearly 60% of homeowners admitted they received help purchasing their first home, with roughly one-third receiving more than $50,000. As for maintaining their residencies, 71% homeowners said they share housing costs with a partner or relative.
“The path to homeownership increasingly depends on factors beyond income alone,” said Li Zhang, financial literacy leader at CPA Canada. “With high home prices and slower wage growth, especially among younger Canadians, many rely on financial support or cost sharing to make a purchase possible. Without that support, entering the market becomes significantly more difficult.”
The survey was conducted from March 20-22 via an online survey of 1,525 Canadian adults.
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